Maybe. By putting $179 into a $50k policy you're actually over funding the saving portion of the vehicle which is smart (but, I'm guessing because if you bought it in your 50's then you're not - so maybe scratch that thought).
Consult your insurance broker/financial advisor. You could potentially put the existing policy into an annuity so you could protect either the taxable position that the policy is in OR so you don't forgo any loss that's in there. If there's a loss and you just cancel it then you get no economic benefit from that loss.
Then using the funds to fund an IRA could be smart. Ignore the 'dump it and get term" because they obviously don't understand.
While it is true that term life is cheaper than a variable policy when you're looking at getting at the two policies out of the gate, it's not necessarily true when talking about an existing policy.. However, when you've owned a variable policy for a long time you're already past the heavy charges so from this point forward the rate of return is much much greater. You have to do the math and not shoot from the hip.
I have a variable universal life policy that costs about $14 a month in insurance charges. It'd be foolish to cancel that as that less than what term life policy would cost me, but I didn't buy it yesterday.
Be careful when cancelling a life insurance policy!
There are several things that needs to be considered. Like is there a surrender charge that will eat up most of the value in the policy? And, you might ask the insurance agent or company for an illustration showing if you make no more payments into the policy how long the policy will last. You might just want to stop making payments and let the money already in the policy pay the premiums and let it run itself out and then start paying the $179 a month into something else.
This variable life policy is not a good investment plan but you might let it run itself out with no future payments into it and open a real investment plan and put your money into that.
Call your insurance agent or company for investment advice. Insurance agents are usually not licensed to sell variable products.
Life insurance is a financial tool; used to replace your income if those who depend on you need financial assistance. It doesn't sound like anyone is dependent upon your income. Unless you have another reason for the insurance it would probably be a good idea to cancel it and contribute the money to your retirement. You will also get some money back; look at your statement and where it states "surrender value" is the amount you'll receive.
You do NOT have a variable TERM life policy at that price.
So. What is the GOAL of the insurance? If you had no insurance today, would you BUY some? What do you want it to DO for you?
If you have no goal for the life insurance to acheive, then no, don't keep the policy. If you have a goal you want it to acheive, then start shopping around for a better price, AFTER you've clearly defined the goal.
Life insurance is a crappy savings/investing tool. It's a great DEATH PLANNING tool.
Set the goal. Then decide if you need it or not.
$179/mo is pretty steep for only $50k of coverage. The whole point of life insurance is to make sure your spouse and children would be taken care of if anything happened to you. Your children are old enough to take care of themselves, your spouse is in good financial shape? I would say cancel it.
Yes, dump it in the morning, if not sooner. You can get term life at many places for a lot less, alot less.
Dump it
i say go for it use the money and have fun while your alive